Which of the following is FALSE regarding preferred stock Preferred dividends are generally fixed  A company is NOT allowed to omit the preferred dividends and still pay dividends to the common stockholders Preferred stockholders have the right to elect a pro-rata portion of the board of directors Preferred stock trades in the secondary market between investors Most preferred stock is cumulative, meaning that if the company is behind on paying preferred dividends, it must be brought up to date before dividends can be paid to the common stockholders.

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